Opened early Europe at $1.2587, EUR/USD closed in NY at $1.2605 and marked session highs at $1.26083 before easing below $1.2600 on light trade, with traders noting Tokyo sales of EUR/JPY suggested to be linked to bund redemptions. Rate drifted to a session low of $1.2582. Initial recovery efforts were thwarted around $1.2590 as EUR/AUD sales countered, but the release of strong Australian retail sales data lifted AUD and took EUR/USD back toward $1.2600. Rate struggled to gain a toe hold above and settled back between $1.2585/95 into European trade. Early demand took rate back toward the $1.2600 area but again met decent resistance. Rate eased lower as weak longs were squeezed, the move taking the rate to extended lows of $1.2575 before meeting decent demand. Rate then settled back around $1.2585 with trade remaining subdued by today’s US holiday and forthcoming ECB rate decision Thursday and key US jobs data Friday. Good demand remains at $1.2575/70 ahead of $1.2560/50 versus offers at $1.2600/10 and $1.2620/30 with stronger interest at $1.2650
EasyForexNews Research Team